<span class="heading1">FAQs</span>
<p><a href="#1">Q. Does FERA exist ?</a><br>
  <a href="#2">Q. What does FEMA stand for ?</a><br>
  <a href="#3">Q. Is FEMA a criminal law ?</a><br>
  <a href="#4">Q. Where is the appellate tribunal for foreign exchange ?</a><br>
  <a href="#5">Q. Who has the authority to accept the deposits of penalities the deposits of penalities ?</a><br>
  <a href="#6">Q. What will happen to the pending cases ?</a><br>
  <a href="#7">Q. Can an Indian company borrow funds from NRI's/OCB's ?</a><br>
  <a href="#8">Q. Can authorised dealer grant rupee loans to NRI's ?</a><br>
  <a href="#9">Q. What is 'Deposit Regulation' ?</a><br>
  <a href="#10">Q. Who is a 'Resident of India' ?</a><br>
  <a href="#11">Q. What is the Residential Status for Companies/Non-individuals ?</a><br>
  <a href="#12">Q. How are capital a/c transactions treated ?</a><br>
  <a href="#13">Q. Can an Indian Resident hold immovable property abroad ?</a><br>
  <a href="#14">Q. Can a Non-Resident hold immovable property in India ?</a><br>
  <a href="#15">Q. How are Current A/C transactions treated ?</a><br>
  <a href="#16">Q. Are services an 'exportable' item ?</a><br>
  <a href="#17">Q. What are the penal provision under FEMA ?</a></p>
<hr>
<p><br>
</p>
<p><span class="heading11"><a name="1" id="1"></a>Does FERA exist ?</span><br>
  A.	NO. FEMA has repealed FERA and has come into effect from June 1, 2000, vide Notification No.G.S.R.371 (E) dated 1.5.2000.</p>
<p><span class="heading11"><a name="2" id="2"></a>What does FEMA stand for ?</span><br>
  A. Foreign Exchange Management Act.</p>
<p><span class="heading11"><a name="3" id="3"></a>Is FEMA a criminal law ?</span><br>
  A. No, unlike FERA, FEMA is a civil law</p>
<p><span class="heading11"><a name="4" id="4"></a>Where is the appellate tribunal for foreign exchange ?</span><br>
  A. In exercise of the powers conferred under Sec.18 of the FEMA 99 (42 of 1999), the central government has established the appellate tribunal at New Delhi. (section 18.) Notification No. S.O.531(E) dated .1.6.2000.</p>
<p><span class="heading11"><a name="5" id="5"></a>Who has the authority to accept the deposits of penalities the deposits of penalities ?</span><br>
  A. In exercise of the powers conferred under the provision to Subsec(1) of Section 19 of FEMA 1999 the Deputy Director of the Directorate of Enforcement of the concerned zone can accept deposits of penalties imposed by the Adjudicating authorities or the special Director(appeals) under the provisions of the Act(section 19). Notification No. S.O. 537(E) dated 1.6.2000</p>
<p><span class="heading11"><a name="6" id="6"></a>What will happen to the pending cases ?</span><br>
  A. Under Section 20, Notification No.S.O.530(E) dated 1.6.2000, any appeal preferred to the Appellate Board under Subsection (2) of Section(52) of the repealed Act, but not disposed of before the 1.6.2000 being the date on which the said Act came into effect, shall stand transferred to and shall be disposed of by the Appellate tribunal constituted under the said Act.<br>
</p>
<p><span class="heading11"><a name="7" id="7"></a>Can an Indian company borrow funds from NRI's/OCB's ?</span><br>
  A. General permission has been granted to borrow funds on repatriation/non-repatriation basis , subject to terms &amp; conditions which correspond to the provisions of erstwhile Notification No. FERA 213/99-RB dated 1.11.99.(Paragraph 10c.7(ii) &amp; 10c.15 of the ECM.)</p>
<p><span class="heading11"><a name="8" id="8"></a>Can authorised dealer grant rupee loans to NRI's ?</span> <br>
  A. Yes, Regulation 7 gives general permission to Authorised Dealers to grant Rupee loans to NRI's against Security of shares or Immovable property in India subject to certain conditions which correspond to the provisions of paragraph 10D.2(i) of the ECM.</p>
<p><span class="heading11"><a name="9" id="9"></a>What is 'Deposit Regulation' ?</span><br>
  A. It deals with maintenance &amp; operation of Accounts like-Non -Resident (external)A/c, FCNR A/c(B)[F.C. (Non-Resident)A/c(Banks)], Ordinary Rupee A/c, Non-Resident(Non-repatriable)A/c, Rupees (NRNR) Deposit A/c, Non-Resident(Special)Rupee A/C.</p>
<p><span class="heading11"><a name="10" id="10"></a>Who is a 'Resident of India' ?</span><br>
  A. An individual shall be treated as 'Resident in India', if he remains in India for more than 182 days in the preceding Financial year.</p>
<p><span class="heading11"><a name="11" id="11"></a>What is the Residential Status for Companies/Non-individuals ?</span><br>
  A. A Person /body other than an individual is considered Resident, if it is registered or incorporated in India. Further an office, branch or agency in India, which is owned or controlled by a person 'Resident outside India', shall be treated as 'Resident in India'. An office, branch or agency outside India owned &amp; controlled by a person who is a Resident in India, shall be treated as 'Resident in India'.<br>
</p>
<p><span class="heading11"><a name="12" id="12"></a>How are capital a/c transactions treated ?</span><br>
  A. Section 6 of the Act deals with 'Capital A/c transactions.' Loans ,investment &amp; all other such transactions, which alter or create new liabilities, including contingent liabilities, outside India of a person who is Resident in India are Capital A/c transactions. Acquisition of assets or Accretion to liabilities in India of a person not resident in India will also be treated in the same manner.<br>
</p>
<p><span class="heading11"><a name="13" id="13"></a>Can an Indian Resident hold immovable property abroad ?</span><br>
  A. Interests of a Resident holding Foreign currency, Foreign Security or Immovable property abroad, which he acquired while he was Non-Resident or inherited from a Non-Resident person, shall not be jeopardised.</p>
<p><span class="heading11"><a name="14" id="14"></a>Can a Non-Resident hold immovable property in India ?</span><br>
  A. As per Provisions, the interests of a Non-Resident holding Indian Currency, Security or any Immovable property in India, which he acquired while being Resident in India or inherited from a Resident person shall be protected.</p>
<p><span class="heading11"><a name="15" id="15"></a>How are Current A/C transactions treated ?</span><br>
  A. Current A/c transactions include specifically payments due in connection with Foreign Trade, Short-term banking &amp; Credit facility, interests on loans, net income from investments, education &amp; medical care expenses as set out in sub section 2(j) of section 5</p>
<p><span class="heading11"><a name="16" id="16"></a>Are services an 'exportable' item ?</span><br>
  A. Section 7 of the Act includes 'services' also as an exportable item besides usual goods.</p>
<p><span class="heading11"><a name="17" id="17"></a>What are the penal provision under FEMA ?</span><br>
  A. Section 13 provides for penalty , which may be imposed if contravention takes place in respect of any provision of the Act, Rule, Regulation &amp; Notification issued by RBI.(Also see 'Quantum' of penalty.)</p>
